August 2025 Market Insights

Key insights from July 2025 (compared to July 2024)*

• New listings: 6,770 | +5.8%
• Inventory: 10,195 | +1.8%
• Months’ supply: 2.70 | 0.0%
• Pending sales: 4,391 | +4.3%
• Median sales price: $395,000 | +2.6%
• Closed sales: 4,510 | -1.7%
• Days on market: 40 | +11.4%

The highlights

• July saw increases in new listings, pending sales, median sales price and inventory.
• Listing activity continues to grow, though it is still a sellers’ market.
• While lower mortgage rates have helped give some the confidence to enter the housing market, affordability continues to prohibit many buyers.
• Sellers continue to receive most of their listing price, though the time on market has increased.

July brought some great gains in the Minnesota housing market, with new listings, pending sales and median sales price all increasing over 3%. With summer at its peak, buyers and sellers have become more active, with the Twin Cities metro having a slight edge over state metrics. In the metro, listings increased 5.8% (4.0% statewide) and sales were up 4.3% (3.1% statewide).

Now that we are more than halfway through the year, one promising trend is that 2025 listing activity has surpassed sales, which in turn has created a higher inventory level for the past 21 months in the metro and 24 months across the state. However, we still remain firmly in a sellers’ market, with only 3.1 (state) and 2.7 (metro) months’ supply of homes.

With 30-year mortgage rates slowly coming down, more and more buyers who have only dipped their toes into the housing pool are starting to fully wade in. But while mortgage rates are becoming a bit more affordable, housing prices continue to be a huge roadblock for many, especially first-time buyers. Record setting home prices in June decreased somewhat, with the current median sales price in the state reaching $365,000 and $395,000 in the Twin Cities.

As inventory continues to rise, sellers should be prepared to wait longer than their neighbors did a few years ago. Across the state, it took 46 days on average for a home to sell, with the Twin Cities faring slightly better at 40 days. The good news is that sellers are continuing to receive much of their listing price, with the average home selling for 98.4% of the original asking price statewide and 99.3% in the metro. Of course, region, home type and other considerations play huge factors in those numbers.

The next few months could be telling. Current data shows the labor market cooling, which normally would indicate a decrease in buyer activity. However, should the economy start to suffer, it’s possible that the Fed could cut rates, which could encourage market activity, especially for those who have been deterred from the market due to higher mortgage rates.

Keep your eye on the market and consult with your Edina Realty REALTOR® to determine the best time for you to enter the market and find your next dream home.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 3.7% (as of June 2025)
• Average rates for 30-year conforming mortgage 6.58%**

Ready to help

We are here to help you confidently navigate your housing needs, now and always. Whether you are researching future options, or your circumstances require immediate action, reach out to an Edina Realty agent today for guidance.

*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for July 2025.

**Data sourced from Freddiemac.com for informational purposes only. Please contact your mortgage consultant for any questions related to specific loan transactions.

Where you live

Edina Realty serves locations across Minnesota and western Wisconsin. Here’s a look at the market indicators where you live. All % changes are year-over-year.

Alexandria Area

• New listings: 146 | +9%
• Inventory: 340 | +16%
• Months’ supply: 4.30 | +13%
• Pending sales: 116 | +2%
• Avg. sales price: $331,754 | -8%
• Days on market: 41 | +8%

Brainerd area

• New listings: 733 | +12%
• Inventory: 1,870 | +19%
• Months’ supply: 4.90 | +20%
• Closed sales: 533 | +11%
• Avg. sales price: $436,705 | +11%
• Days on market: 50 | +19%

Lake Superior area

• New listings: 452 | -2%
• Inventory: 1,128 | +35%
• Months’ supply: 4.20 | +31%
• Pending sales: 373 | +13%
• Avg. sales price: $354,927 | +8%
• Days on market: 33 | +6%

Southeast Minnesota area

• New listings: 616 | -4%
• Inventory: 1,221 | +12%
• Months’ supply: 2.90 | +12%
• Closed sales: 499 | +8%
• Avg. sales price: $352,134 | +3%
• Days on market: 34 | -6%

St. Cloud area

• New listings: 176 | +6%
• Inventory: 337 | +25%
• Months’ supply: 3.10 | +29%
• Pending sales: 115 | -14%
• Avg. sales price: $314,728 | +4%
• Days on market: 42 | -9%

Mankato area

• New listings: 205 | -6%
• Inventory: 403 | +15%
• Months’ supply: 2.90 | +16%
• Pending sales: 170 | +7%
• Avg. sales price: $322,966 | +3%
• Days on market: 76 | 0

Northwestern Wisconsin area

• New listings: 619 | +8%
• Inventory: 1,894 | +12%
• Months’ supply: 4.90 | +4%
• Closed sales: 465 | +2%
• Avg. sales price: $376,408 | +13%
• Days on market: 80 | +3%

West Central Minnesota area

• New listings: 334 | -2%
• Inventory: 810 | +15%
• Months’ supply: 3.80 | +12%
• Pending sales: 274 | +10%
• Avg. sales price: $260,890 | +9%
• Days on market: 52 | +4%

Bemidji area

• New listings: 69 | -4%
• Inventory: 260 | +55%
• Months’ supply: 6.70 | +76%
• Pending sales: 45 | -8%
• Median sales price: $335,250 | +22%
• Days on market: 61 | +22%

Leech Lake and surrounding area

• New listings: 106 | +22%
• Inventory: 267 | +17%
• Months’ supply: 6.10 | +13%
• Pending sales: 74 | +51%
• Median sales price: $373,450 | +10%
• Days on market: 23 | -4%

Little Falls area

• New listings: 25 | -7%
• Inventory: 41 | +21%
• Months’ supply: 2.30 | +21%
• Pending sales: 19 | +73%
• Median sales price: $276,950 | +3%
• Days on market: 10 | -9%

Southwest Minnesota area

• New listings: 126 | -9%
• Inventory: 296 | +17%
• Months’ supply: 4.60 | +15%
• Pending sales: 90 | +1%
• Median sales price: $190,000 | +9%
• Days on market: 68 | +24%

Headwaters area

• New listings: 159 | +14%
• Inventory: 340 | +21%
• Months’ supply: 6.90 | +38%
• Pending sales: 113 | +24%
• Median sales price: $318,500 | +12%
• Days on market: 67 | -13%